Cheque bounce case: Panchkula resident to undergo 1-yr jail, pay back double the amount

Had borrowed ₹50 lakh from the complainant; court held that such cases were increasing day by day and need to be dealt with strictly

The Chandigarh district court has awarded one-year jail to a Panchkula resident in a cheque bounce case and directed him to pay ₹1 crore, double the cheque amount, to the complainant.

Complainant Ashima Anand, 52, a resident of Sector 7, Panchkula, had filed a complaint against Ashok Mittal of Sector 4, Panchkula. She had stated that Mittal had friendly relations with her family and she used to attend kitties organised by him.

In July 2014, Mittal borrowed ₹15 lakh cash from her husband and returned it through real time gross settlement (RTGS). Thereafter, he demanded ₹50 lakh as financial help with a request to transfer the same in the account of M/S Khanna Traders and her husband transferred the amount through RTGS.

In order to discharge of his liability, Mittal issued cheque of ₹50 lakh. He returned the same and also paid ₹27,000 as interest for the utilisation of the said amount.

But he again approached them for financial help of ₹50 lakh and the same was transferred through RTGS in the account of M/S Arawali Trading Co. Mittal issued a cheque dated September 2014, however, when the cheque was presented, it was dishonoured with remarks “funds insufficient”.

Mittal, in his defence, said he was innocent and that the cheque in question was issued by the accused to the husband of the complainant in respect of an agreement of sale of kothi but that agreement never saw the light of the day.

The court stated that the Mittal had committed a serious offence by deliberately failing in discharge of his economic liability and failed to ensure the payment of cheque drawn by him.

It stated that the commission of offence punishable under Section 138 of Negotiable Instruments Act, 1881, is increasing day by day and is required to be dealt with strictly.

Stating that the accused does not deserve any leniency of probation under the Probation of Offenders Act, 1958, the court awarded one-year rigorous imprisonment.

The court also directed the accused, Ashok Mittal, to pay ₹1 crore to the complainant, i.e. double the cheque amount within a period of one month of expiry of period prescribed for appeal, or its disposal, if any.